Robe TVET College

Unit of Competence 2:- Apply Continuous

improvement KAIZEN

Prepared by:- Seyifu Bedada(Bona)

Adoolessa A.L.H
 Contents of the Slide
1. What is Kaizen?
2. The Emergence of Kaizen as a Management
Philosophy
3. Why Kaizen is Necessary?
4. Guiding Principles of KAIZEN
5. Kaizen in Ethiopia
6. Characteristics of Kaizen
7. Some Basic Kaizen Techniques
8. The Seven Wastes
2
1. What is KAIZEN?

改 (Kai): Change, alter

善 (zen): better, right

KAIZEN means “Change for better.”

KAIZEN is a Japanese business philosophy that

assumes our way of life – be it our working life,
our social life, or our home life – should focus
on continual improvement efforts.
(Masaaki Imai, 1997; “GEMBA KAIZEN”)
3
 1. What is KAIZEN? Cont….

• KAIZEN is “a Japanese business philosophy of

continuous improvement of working practices,
personal efficiency, etc.”

4
 2. The Emergence of Kaizen as a Management Philosophy

Kaizen developed and spread in Japan and later to the

world in four phases.
Phase I- 1950s (end of world war II) Japan products
were low quality and low price. Japanese industrials &
academicians then interested in the advanced quality
control techniques of America & learned. The Union of
Japanese Scientists and Engineers (JUSE) was established
in 1946 & Japan productivity Center (JPC) in 1955, to
introduce and disseminate American scientific quality
control techniques in Japan (from Dr. W. Edwards
Deming - a US statistician and consultant). In 1951,
within JUSE, Deming Prize established and awarded
every November (Quality Month). This raised the quality
control level in Japan. 7
 2. The Emergence of Kaizen as a Management Philosophy cont….

• Second phase- diffusion of Kaizen in Japanese

small and medium sized companies. The number
of QCC in 1970s and 80s increased.

• Third phase in mid 1980s spread of Kaizen in

Japanese firms abroad. Most Japanese enterprises
are now endowed with world-leading capability.

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 2. The Emergence of Kaizen as a Management Philosophy cont….

Fourth phase- Kaizen spread to other developing regions

in Latin America & Eastern Europe including Africa
(mainly in Sub-Saharan Africa). Kaizen become also
famous worldwide through Imai’s book on Kaizen written in
1986, ‘Kaizen: The Key to Japan’s Competitive Success’.

Mr. Imai established

the consulting
company Cambridge
Research Institute &
serves as its
president.
9
 2. The Emergence of Kaizen as a Management Philosophy cont….

JICA has also offered assistance for KAIZEN to many developing

countries.
“5S” in many languages

Source: JICA’s World No.28 (2010) 8

 2. The Emergence of Kaizen as a Management
Philosophy cont….

• JICA’s assistance with Kaizen started in Asian

countries like Singapore in 1983 then in Malaysia,
Philippines, Thailand, Indonesia and Vietnam.
• In Latin America countries like Costa Rica, Chile,
Argentina, Paraguay, Brazil and Mexico.
• In Eastern European Countries like Poland, Hungary,
Baltic countries(Estonia, Latvia, Lithuania), Armenia,
Bosnia Herzegovina, and Serbia.
JICA KAIZEN Assistance in Africa
Egypt, Tunisia, Ethiopia, Kenya,
Zambia, Ghana, Tanzania,
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 5S in Indonesia

Clarification of
Inspection tools in
safety passages
good order with
name plates

Visual Control
Board
Source: Homma, T.
(2001)
10
 3. Why Kaizen is Necessary?
At Company Level
Objectives of Seeking Profits &
the Company customer satisfaction

Elimination of “Muda”

Quality Improvement
Training
for the Employees Cost Reduction

Delivery Time

Profits

Continuity
of the Company

Higher Level of Living Conditions of Employees

11
 3. Why Kaizen is Necessary? Cont….
At National level
Increase in profit
Enhancement in competitiveness

Increase in wage
Job generation
Increase in payable tax → Contribution to National finance

National Growth
12
 3. Why Kaizen is Necessary? Cont….

 Make optimal use of peoples’ skills

 Reduce overall cost
 Maintain high quality (or improve quality)
 Reduce or eliminate wastes (MUDA)
 Improve productivity
 Safety
 Shorten lead time & improve delivery time
 Reduce space-use etc

13
4. Guiding Principles of Kaizen

• Proactive and spontaneous

participation of front-line workers
(they are centre of Kaizen activities).

• Focus on the improvements of

workplace/Gemba (the foundation of
all the improvement efforts). It is a
key entry to endless revolving
activities of KAIZEN.

• Practicing kaizen that lead to a

corporate culture.
 4. Guiding Principles of Kaizen cont…

• Kaizen fosters process as well as result oriented

thinking.

• Speak with data - collect, verify and analyze data.

• Put quality first even than cost and delivery.

• Bottom-up approach.

• Top management commitment.

• Learning process and customization

• Customer satisfaction
4. Guiding Principles of Kaizen cont…

How to Increase Profit

1. Raise sales price

Demand > Supply
Profit

Raise price Traditional Thinking

if customers don’t Price
care about prices Cost Price=Cost + Profit

2. Reduce cost
Demand < Supply
(Prices are determined
by customers) Profit

Kaizen
KaizenThinking
Thinking
Lower cost Price
If customers care Cost Profit
Profit =Price
=Price –– Cost
Cost
about prices

16
 5. Emergence of KAIZEN in Ethiopia

• July 2008 - Initiative for Policy Dialogue (IPD)

in Addis Ababa. The Late Prime Minister Mr.
Meles Zenawi requested to government of
Japan.

• June 4, 2009 - agreement was signed between

Japan International Cooperation Agency
(JICA) and the Ministry of Industry (MOI) of
Ethiopia.

• October 26, 2009 – a pilot project (The study

on the Quality and Productivity improvement
project) started.

17
 5. Emergence of KAIZEN in Ethiopia cont…

Project team - Kaizen Unit (KU) / MoI & JICA

expert team
Project Period - October 2009 – May 2011
Pilot companies – 30 companies
Project Area – Addis Ababa & its vicinity.

Objectives of the pilot project

1) Formulate a National Plan (dissemination
plan)
2) Formulate a manual
3) Transfer relevant skills and techniques to
Kaizen unit members
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 1st Kaizen Project Outputs

t io n Audio-
nt a
e
m u al visual
p le n
Im Ma Material

News
Letter

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 Ethiopian Kaizen Institute (EKI)
Ethiopian Kaizen Institute (EKI) is established on
Oct. 2011 by Council of Ministers of Ethiopian
Government Regulation No. 256/2011.

Objective of the Institute

 
“ To carry out country wide broad based
quality and productivity movement and
thereby enhance industry competitiveness.”
 
(Regulation No. 256/2011, Federal Negarit Gazeta Oct. 2011)
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 5. Emergence of KAIZEN in Ethiopia cont…

Major Functions of EKI

1) Formulate and implement policies, strategies and
programs that assist in the dissemination of the Kaizen
philosophy.
2) Create country wide quality and productivity movement
3) Provide Training
4) Provide Guidance & Consultation service
5) Prepare, review, and distribute Kaizen training and
consultancy manuals and follow up of their performances.
6) Create Certification & Awarding systems

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 6. Characteristics of KAIZEN
1. Continuity
2. Participatory approach -top executives, middle
managers and front-line workers (team work).
3. Accumulation of small improvements
4. Improvements come with minimum investment (low-
cost approach). “If no money, use your brain.”
5. Widely Applicable (manufacturing sector, service
sector, public organizations, non-profit organizations.

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 6. Characteristics of KAIZEN cont..
Continuity
P: Plan
D: Do
C: Check A P
A: Act C D
A P
C D

A P
C D Improvement

Improvement

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 6. Characteristics of KAIZEN cont..
Continuity

Plan Do
PDCA
Cycle

Action Check

24
 6. Characteristics of KAIZEN cont..
Observation
PDCA
Cycle
Selection of Plan
problem
Standardization
Understanding of
current situation
Act

Confirmation
of result Setting of
objective
Check
Investigation and
implementation of
counter measure
Setting of plan

Do Analysis of
factors 25
Example of PDCA cycle

CORRECT PLAN

CHECK DO
 7. Some Basic Kaizen Techniques cont…

“5S”
• Sort, Set in order, Shine, Standardize, Sustain.
• 5S is a prerequisite for KAIZEN.

• 5S is cost effective.

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5S in a Woodwork Enterprise
Before

After

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7. Some Basic Kaizen Techniques cont…….

Leveled Production
Leveled production means leveling of type and/or
volume of items produced at anytime. It is avoiding
variance in product types and/or volume.

Un-leveled production Leveled production

Muda of Over-
production
Muda of Waiting
Muda in
Transportation
Muda of Inventory

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7 . So me Ba sic Kaize n Te ch niq u e s co n t… ….
Just in Tim e

Just-in-time is a method of production in which a

production line produces just what is needed, only
when needed, and in exact quantity needed.

Three Basic Principles

Takt Time Pull

Production System

Just in time

Leveling
7. Some Basic Kaizen Techniques cont……

Continuous Flow Processing

Continuous Flow Processing is a method of production

in which products move from one work station to the
next to complete a process.
- Piece by piece in succession
- Within the span of Takt Time
- Correct sequence of processing

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 7. Some Basic Kaizen Techniques cont……
Pull System

In a pull system each process produces its products as

the next downstream process requires them.
Kanban is used as the communication tool to request
parts, semi-products or materials from the upstream
process in exact quantity & specifications needed.

Push System Pull System

Necessary 　
amount
 7. Some Basic Kaizen Techniques cont…

JIDOKA

JIDOKA is a systematic approach to prevent

defects or abnormalities from passing to the next
process. Operation stops automatically by a
programmed machine at the time of detection of
an abnormality or stopped by the worker who
detected the abnormality.
 7. Some Basic Kaizen Techniques cont……

POKAYOKE (Fool proof)

Pokayoke means error prevention. It is a method which
avoids mistakes and defects from being produced. e.g,
only one type of bolt used within a specific work-station
to prevent wrong part usage.

Jig Method

• Usage of Jigs
• No attachments of parts
with different specifications

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7. Some Basic Kaizen Techniques cont……

　 Standard Operation
Standard Operation is an efficient production
method/procedure that can be followed by anyone
assigned for a task. It helps to clarify the rules for
the production method and find out what is wasteful,
uneven, and overburdening.

“All I need to do is to follow the same cycle !”

7. Some Basic Kaizen Techniques cont……

Standard Operation Cont…

Three Elements of Standard Operation. 　　

1) Takt Time 2)
2) Operating
Operating 3) Standard
3)
Procedure In-Process
The time that is Stock
considered ideal Time
Time Sequence
Sequence
for making one of
of an
an Operation.
Operation. Minimum number
unit of product. of In-process
stock required
“Without standard there can be no
KAIZEN….” Taiichi Ohno
 8. The Seven Wastes

1) “Muda” of Overproduction
2) “Muda” of Inventory
3) “Muda” of Waiting COST
COST

4) “Muda” in Transporting
5) “Muda” of Defect-making
6) “Muda” of Motion Cost Reduction by Elimination
of Muda
7) “Muda” in Processing

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 8. The Seven Wastes cont…

Over Produced
Motion

7 Categories
Transportation
of Waste

Inventory Waiting

Defect Making
Over Processed
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 1)“Muda” of Overproduction
To produce things more than necessary in
terms of type, time, and volume. It is called
“the worst kind of Muda” since it hides all the
other wastes (transportation, storage area and
defect making).

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 2) “Muda” of Inventory
Inventory includes a stock of raw materials,
work in process and final products. It needs
stock space and excess transportation.

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 3) “Muda” of Waiting

Workers, machines or parts waiting for an

upstream process to deliver,
-for a machine to finish processing,
-for incoming parts or materials,

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 4) “Muda” in Transporting
It is transportation of materials over a long distance or re-
piling up. Transportation is usually difficult to be totally
eliminated but reducing is possible. Layout improvement reduces
Muda in transporting.

43
 5) “Muda” of Defect-Making
This includes defects, inspections

for defects in-
process, reworks, and resource loss.

44
 6) “Muda” of Motion
These are non-value adding movements or more than
necessary movements of workers, equipment, and
machines, such as looking for goods, bending,
stretching, walking, lifting, and reaching etc.

45
 7) “Muda” in Processing

This consists of processing and operations

primarily unnecessary. It is processing beyond
the standard required by the customer. Eg.
relying on inspections rather than designing
the process to eliminate problems.

46
 Important Points
Knowledge of Kaizen concepts and
techniques.
Attitude with positive thinking
Involvement of all from top management
to front-line workers.
Zealous support for Kaizen.
Education about Kaizen (training).
Never-ending Kaizen activity.

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Ofi Haa Beeknu Oromiyaa Haa Baru